Correlation Between Citigroup and FTAI Infrastructure

Can any of the company-specific risk be diversified away by investing in both Citigroup and FTAI Infrastructure at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and FTAI Infrastructure, you can compare the effects of market volatilities on Citigroup and FTAI Infrastructure and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and FTAI Infrastructure.

Diversification Opportunities for Citigroup and FTAI Infrastructure

-0.56

Correlation Coefficient

Citigroup  FTAI Infrastructure

Excellent diversification

The 3 months correlation between Citigroup and FTAI is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with FTAI Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Infrastructure has no effect on the direction of Citigroup i.e., Citigroup and FTAI Infrastructure go up and down completely randomly.

Pair Corralation between Citigroup and FTAI Infrastructure

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.27 times more return on investment than FTAI Infrastructure. However, Citigroup is 3.74 times less risky than FTAI Infrastructure. It trades about 0.09 of its potential returns per unit of risk. FTAI Infrastructure is currently generating about -0.04 per unit of risk. If you would invest  9,284  in Citigroup on July 18, 2025 and sell it today you would earn a total of  694.00  from holding Citigroup or generate 7.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  FTAI Infrastructure

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in November 2025.

FTAI Infrastructure

Risk-Adjusted Performance

Weakest

Over the last 90 days FTAI Infrastructure has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Citigroup and FTAI Infrastructure

The main advantage of trading using opposite Citigroup and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, FTAI Infrastructure can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FTAI Infrastructure will offset losses from the drop in FTAI Infrastructure's long position.

The idea behind Citigroup and FTAI Infrastructure pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.